Diversified Healthcare (DHC) Q3 2024 Earnings Report

Headline metrics and core drivers for DHC QQ3 2024:
- Revenue: $373.64 million; YoY +4.8%; QoQ +0.61% (per reported metrics). Gross margin: 17.1% (gross profit $63.94 million).
- Operating performance: Operating income −$18.95 million; operating margin −5.07%. Net income −$98.69 million; net margin −26.41%. Diluted EPS −$0.41.
- NOI and property performance: Same-property cash NOI $65.8 million, up 16.1% YoY and down 1.5% sequentially. SHOP NOI $27.4 million, up 32.6% YoY but lower on a quarterly basis due to higher seasonality and cost dynamics. RevPOR increased ~80 bps QoQ; occupancy for SHOP properties at quarter-end around 79.4%–75.2% for the subset disclosed in guidance.
- Capital and liquidity: Normalized FFO $4.0 million, or $0.02 per share. Ended the quarter with cash over $256 million. CapEx (9M 2024) $118 million; full-year CapEx guidance $180–$190 million (SHOP CapEx $130–$140 million). Free cash flow reported at $108.9 million. Long-term debt $2.945 billion; net debt $2.689 billion; total assets $5.285 billion; total stockholders’ equity $2.049 billion.
- Guidance and outlook: Full-year SHOP NOI guidance reduced to $102–$107 million; occupancy outlook modestly below 80% by year-end due to 2024 peaks and slower absorption. CapEx guidance unchanged at $180–$190 million (SHOP CapEx $130–$140 million). Management cited Hurricane-related costs and insurance dynamics as near-term headwinds.